Ethiopia has unveiled a pioneering new 'regulatory sandbox' aimed at nurturing fintech startups and driving innovation across the nation's financial sector.
The sandbox, launched in the capital Addis Ababa, will create a controlled environment where firms can test products and services without fully adhering to regulations.
It aims to turbocharge the development of Ethiopia's fledgling capital markets and broader financial services industry. Authorities hope to unleash a wave of homegrown fintech startups by easing barriers to testing.
Speaking at today's launch event, Director General of the Ethiopian Capital Markets Authority Hanna Tehelku said: "We are not merely introducing a regulatory tool-we are setting the stage for a future where innovation thrives within a well-regulated and secure financial market."
She invited interested businesses to apply to join its first cohort, with the application window open until September 30th.
The sandbox is seen as a major opportunity for Ethiopia's blossoming fintech scene, home to hundreds of startups developing mobile banking, payments and lending apps tailored for the local market.
It also aims to benefit established banks looking to fast-track digital transformations, as well as consumers set to enjoy innovative new services.